advances ♪ good morning, everybody. welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. we're continuing to watch oil prices today. those prices slipped overnight after they surged late yesterday to levels we haven't seen since 2008 this pullback comes after fears of a supply disruption from saudi arabia eased a little bit. there was an iranian media report yesterday during the trading session that said there was a pipeline fire and a top exporter. then a saudi oil official told cnbc it was untrue and we did see rapid moves, first of all, the oil markets moving up rapidly. stocks moving down on this news. it's been a reversal as we heard saudi arabia telling us that this was not the case. right now you see oil prices down by 66 cents, 108.18. >> so close to 13,000 yet so far away. up for a bit and then reversed course. >> nasdaq 3,000 is important, too. >> that is true.

>> 5,000. back in the day. >> we were doing music and remember there was -- there was even a nasdaq stock, they made the catalogs that you pull out of the back seat of the airplane seat. remember the sky something -- >> sky mall. >> sky mall! that was the hottest thing. that was like a bubble stock. >> i looked through sky mall on monday. >> people who buy things in sky mall -- >> do you know people who buy things? >> i bought something when i first came back from maternity leave but i think that's because i hadn't been out and shopping in three months. that very first flight -- it wasn't maternity related. i hadn't been out shopping. >> your hormones were like -- >> and my hormones were going crazy but i hadn't been out and hadn't spent any money. >> that wasn't you. i love the gadgets.

>> i actually did a test because that was three months ago when i came back, it was a flight i went out to omaha and i circled all these things i loved in sky mall and i bought half of them and then i got on the plane this time and looked through and there wasn't a single thing i wanted. it may have been hormonally related. >> do you dial the phone when you're watching cable and order things like that, too? snuggie? >> the huggy. it's like a blanket -- it's a blanket -- >> a blanket with sleeves. >> the snugly? what is that thing called? >> i'm going to get you one. >> we have news to do -- >> what is it? >> what's it called? >> i don't know. john is talking to me. let's do global market headlines and we can talk about some other stuff. overnight deposits by banks at the european central bank spiking according -- making a new record early in the week the ecb issued a huge batch of lo long-term emergency loans to the continent's lenders. also today barclays saying that it's tapped europe's central bank for $10.9. the move is a change for the

british bank as it did not take any cash as the previous offer in december. i'm about to cough, excuse me. barclays had been worried about the risk of taking funds. the bank says the money will be used to manage funding gaps in spain and portugal. >> you're a young man. >> i was going to cough. >> you're doing geezer like moves. you are. did you see duvall? geezer moves. >> we're on these wireless mikes where where you can't turn them off. >> you were just going on fine and all after sudden -- >> i could feel the cough coming on. >> swallowed your tongue or something. that was weird. are you all right now is this. >> now i'm fine. >> back in the u.s., san francisco fed president john williams, the great composer, too, says recent signs are encouraging but in a speech in honolulu last night, he warned that the rebound has been anemic and said the federal reserve

must keep applying monetary policy stimulus. >> that is different than we heard from every one of the fed presidents who has been speaking over the last two weeks. >> i want to talk -- i want you to let me say a few things before you defend geithner -- >> oh, boy. >> you're an expert on the financial crisis, because they're too big to fail. >> go for it. >> treasury secretary tim geithner pending an op-ed in today's "wall street journal" reflecting on the financial crisis making the argument and he writes in part only four years after the financial crisis some people seem to be suffering from amnesia about how close america came to complete financial collapse under the outdated regulatory system before we had wall street reform. he argues that the costs of reform are not too high, but, okay, he writes, my wife occasionally looks up from the newspaper with bewilderment while reading another story about people in the financial world or their lobbyists complaining about wall street reform claiming they didn't need

t.a.r.p., she reminds me of the calls she answered late at night or early in the morning from the giants of our financial system. deputy treasury secretary will join us live at 8:10. here is my only problem with this. >> okay. >> the notion that anyone has forgotten about the financial crisis given that this -- and it's not just this administration. maybe because we're in financial news, we know -- we hear about it every day. that's why we're at 8.3%. that's why it's been so hard to come back from this. that's why even though it's not great now, it's so much better than it was and i brought it back from the brink. think what was happening. think if we hadn't done stimulus. who has forgotten about the financial crisis? >> i think their point is bankers have gone from being very grateful to being very angry and you can say it's for a lot of different reasons, maybe the rhetoric -- >> or they're perfect. >> no, no, because you can look at the reforms and say, wait a

second. a lot of the stuff we're doing had nothing to do with the crisis in the first place. there's a difference between fergting about it and disagreeing with the remedies put in place and whether the pendulum is swinging too far or worried -- >> back to 2008 as things were about to fall off the cliff, i think many of the financial giants, so to speak, would have taken anything. >> some of them department want t.a.r.p. citigroup, aig, bear stearns, lehman brothers. some did. >> sure, you can do anything you want and we'll take it. >> all right. but there's a difference between forgetting and being ungrateful and disafwreg with some of the remedies that are being applied and looking at credit. >> it's difficult when you paint them all with a broad brush. you did have people in big, big trouble and others who weren't. >> it also helps them play into the narrative it was all the banks which we know was a huge global society, a housing boom,

it was a leverage boom that was ten years in the making, there were government policies that were flawed. >> that's a good point. >> all these different things. once again, immediately pins it all on the guys that perpetrate it had and they haven't learned their lesson and it also is done to try to push all these -- it's an election year. >> he's yelling at you although i was making the point. >> i'm going to agree with becky. >> that's why i said let me talk before -- >> i'm going to agree with you in that it was a larger issue than just the banks and this has become political -- >> who has forgotten? >> and the wall street banks have become political football. i think tim geithner's comment has less to do with saying everybody has forgotten, he's using that as a euphemism for a larger issue the banks have pushed back and pushed back as publicly as they have and what that says to a larger it -- to the country about what's going on. if you would ask me in 2009 whether i would have imagined that the big banks would have literally had as many lobbyists

as they had pushing back on this regulation, i would have never thought that. having said that, i would have never thought the did yourbin amendment necessarily would have been included. >> stupid there's a prime example of what we're talking about. wrong-minded. punitive, stupid. >> look, i don't know -- >> by someone -- >> i just know it has nothing to do with the financial crisis. i'm saying it's unrelated. >> bank of america was at $5 a share and he went on letterman and said vote with your feet. he's like trying to cause a run on the biggest bank in the k country. they do stupid things, andrew. >> and that's why the banks do push back. >> let me ask you this. if were you a shareholder are of a bank and you saw that you are going to have tough years and the whole industry is going to change, as a shareholder would you not want your bank management pushing back on these reforms? >> absolute ily. everybody has a horse in the race. >> a dog in the fight. >> or dogs.

race dogs. >> horses don't fight. dogs fight. >> you have a dog in the fight. >> or a horse. >> a war horse. you don't -- because horses don't fight. >> you have a dog in the fight. >> you do? what is blue -- >> a vote? >> yesterday, red, she was asking for it supposedly, that's what people wrote in that it was welcoming sexual advances. what is blue is this nothing? >> you found that article from "the new york post" and brought it right in. i don't know what blue means. >> blue means she's confused. >> no, blue is a cold color. blue is stay away. >> now today i'm ice queen. yesterday what i did notice you and i both matched with the red. today andrew and i match with the blue. >> so you are confused today. >> i don't know which way i'm going. >> i've gotten that out. >> i'd love to hear -- >> but for a while we have seen both -- geithner has said this a lot that we need these reforms. he can't believe that they're pushing back. so this is the latest. >> this is also a full frontal

coordinated attack that's coming not only from tim geithner who has an op-ed in today. if you go to "the economist" there are letters by sheila baer, by dodd, by frank, all of them defending dodd/frank. >> this is much more than political. >> what i'm saying is true. >> but i would argue something else which is tim geithner and the administration have been -- their rhetoric, their bark has been much harsher than ultimately their bite. >> none of the rules have gotten past at this point. so many of them haven't been implemented. >> more broadly, i think, the rules are not as harsh as some people expected. >> that's probably fair, too. >> there are a lot of rules that need to be written. i've been doing some research for this speech. at the chamber. and did you know that there are nine different reimbursement rules in obama care for being injured by a parrot? >> what? >> nine different reimbursement

rates -- there's three different for being injured by a flaming water-ski in case that were to happen. >> you're lying, right? >> what's a flaming water-ski? >> it's a water-ski that somehow is on fire. >> specifically written for that or if you happen to have -- >> no, there's 140,000 different rules, reimbursement rules. so these rules take time. these rules take time. have you ever been injured by a bare rot? it's not pretty. >> you're not being facetious? >> does every health insurance policy have a rule for each type of injury? and then i might understand it but it still makes no sense. >> becky, go ahead. i'll look it up. >> for anybody wondering it's snuggie. >> it is a snuggie. and i'm sure you can be damaged by those. you're stuck and you can't move. >> who was the guy i love who does the other thing -- >> whamo -- >> that guy? you know -- >> you know who knows him is darr darren rovell. >> he has a new product out and i want it.

it's the roller. >> have you seen it? >> i almost called the number. >> i won't own a parrot after this because i've learned. i have learned. >> it's your turn. >> i know, i'm going to. time for the global markets report. ross westgate is standing by in london. they're dangerous, ross. they're dangerous. good morning. >> parrots, yeah. got to watch. we've got green parakeets flying around our house. i duck every time they come by. we are pretty flat during the session, 5-4 decliners outpacing advancers. it comes after solid gains yesterday 1% to 1.5% higher is where we finished. tennessee points to the ftse, the cac up nearly a tenth. ftse mib doing well, up half a percent. that's where the focus is again as we continue to see bond yields fall particularly on

spanish and italian debt. look at these two boards here. ten year italian debt below 5%, 4.95%. the yield, ten-year spanish debt 4.88 so we're continuing to see post-ltro 02. the declines in bond yields particularly at the short end of the italian curve as well. the yield 1.77%. you move below 2% tore the first time in 15 months and we've continued to drop below that. and that's where we're seeing the benefit of l it tro 2. you were talking with about barclays earlier taking $8 billion because they felt the stigma had dwon. of course they were saying they were ring fencing that away from bonuses. so trying to deal with bonus criticism. there's been a lot of that in this part of the world over the earnings season, trying to separate that out and say we're not going to benefit from ltro. banks are benefiting and they will make big profits in the first quarter because of the fall in yield and the rise in the stock markets as well.

as far as euro/dollar is concerned, weaker today. euro/yen falling but still near the recent multimonth highs. dollar/yen hit a fresh high, 81.47. that's where we stand ahead of the u.s. open. back to you. >> ross, thank you very much. have a great weekend. when we come back the last continental flight prepares to take off tonight. this is after the united/continental merge. this is it. >> this is the final flight? where is it going? do we know? >> i don't know. >> then it's united. >> it's called united. >> yeah. i'm surprised that it's actually finally happening. >> i miss continental. i like them more. i guess i'll have to switch. >> you have already. your miles are already over. >> i mean switch allegiance mentally. i like richard. macgyver. >> there we go. we'll be talking markets when we

come back ahead of this week's final trading day, first, though, sports news for you. davis love iii shooting a course tying 6 under 64 to take the first round lead in the honda classic. harris english is among eight golfers tied for second. tiger woods is seven strokes off the pace and in danger of mott making the cut for the weekend. now we'll head to a break. as we do check out the global market headlines. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries.

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welcome back to "squawk." a little bit more red over there, 11 points lower if we open up now. the last flight of continental taking off tonight from phoenix to cleveland. united and continental merged but the big change occurs early tomorrow morning when united finally combines passenger reservations combining into one massive computer system. frequent flier programs this one website. now given the travel we should be talking about the weekend forecast. scott williams joins us from the weather channel. sco

scott? hey, good morning, joe and everyone. of course it looks like a pretty nasty weekend for some as we're tracking a volatile storm system gathering some strength right now. through parts of the midwest. look for long lived, long track tornadoes. in the 30s in new york city. 7 in dallas. san francisco 42 degrees. where you see the red, that's where we'll find the greatest risk for severe weather. this storm system will be on the move towards your saturday bringing with it clouds and showers. denver, some snow for you today. seattle rain and also snow. looking at the tor: con forecast on a scale of 1 to 10, kentucky, middle tennessee an 8. that means an 80% chance within a 50-mile radius of seeing tornadoes today. eastern tennessee northern

alabama, a 60% chance for tornadoes and a 50% chance for southern indiana and also western kentucky so a dangerous situation a little later on today in parts of the ohio river valley. guys, have a great weekend. back to you. >> scott, you have a great weekend, too. we'll see you next week. meantime a check on the u.s. markets and on the economy. joining us this morning president and ceo at sentinel investments. chr christian, thanks for coming in today. we are look iing at dow 13,000 again, nasdaq 3,000, and it's starting to sound like a broken record. we keep making these runs and then giving up. >> we've come a long way. we're well over 20% since then. it's beginning to feel like it's rolling a little bit out of steam and volumes have been high and low again but generally have not been as high as i would like them to be. i think what we've seen is crawling up to these levels

about 1370 on the s&p. the dow jones always gets skewed a little bit by the high-priced stocks. it feels like there's not quite as much momentum or willingness to take it to the next level at this point. >> i read something yesterday, maybe a note from bob pi ssani, forget where, pointing out something even though we're looking at higher levels on all of the major averages there's not enough conviction behind it because when you look at the number of stocks making new highs, it's a relatively low number, that we're talking about stocks like apple that are doing very well. if you break it out and look at the russell 2000. >> that's an important point. on tuesday i think s&p 100 though those are the mega caps outperforming by quite a break, almost 200 basis points. when that starts to happen it looks like stocks are more for their liquidity aspects as opposed to some general confidence that all of the markets are moving in one direction. the russell is going to be more

volatile and more reflective of optimism and negative feeling and obviously more cyclical in nature. so if i see that kind of roll over and go to the large cap stocks it feels like there's tiredness going on and more asset players rather than selection stock players. >> could part of it be the play for the last many months if not the last half year is that people are looking for dividend stocks and those dividend stocks are the ones you can rely on to be high yielding stocks tend to be the bigger stocks. >> there is that and i think that's an important play and not so much the high dividends. it's getting cash which has been sitting on the balance sheets out to shareholders in forms other than share repurchase payback so a lot of pressure to get companies to release the dividends. i think you'll see other cash dividends and more pressure for th that. they are more in the large cap stocks but it's happening more on the russell as well. we're seeing more can companies release more cash and that's a very important sort of secular trend which i think -- pension

funds needed, individuals needed, insurance companies need it and 130 companies of the s&p have the unpaid dividends. that i think is the story that's gone on. >> are the big dividend players already run? >> no. i think there's more to come. >> not necessarily more dividend, what's happening with the actual stock price itself, meaning people have bought into these. >> if they had, they wouldn't be yielding what they are, right? >> the 5%. >> i think you can see the move down from 5% to 3%. but 3% is still a healthy pr premium which is what you are looking for. more you want to look for the good covers and the good dividend momentum so you don't want to be stuck out in the utilities and the bristol-myers. you want to be in the freeports and american express. >> in the old days, the only reason to buy a stock was to get dividends. raised at 12% a year and like six years the dividend --

>> ahead of inflation. >> and then suddenly -- >> hopefully the stock would reflect that. >> the big share repurchase plan sort of came back in the '80s and '90s, tax rates and dividen dividends. it's been very badly exercised. you don't get the cash. you have to wait for management to release it to you when they feel like it. so we're putting a lot of pressure on our companies to make those dividends happen. >> you are? >> absolutely. >> if you think about it, let's stay a stock doesn't pay a dividend, buying 1 billionth of a can company that with no cash throw coming, that's a big leap of faith to owning 1 is billionth of a business. hopefully they're reinvesting t it. why would you even buy it if there's no hope? only if you could sell it to someone else for a higher price. >> apple. >> i'm thinking about apple and things like that. owning a billionth of a share. >> are you convince that had will be a dividend pair in your mind?

>> well, i think so. i think it's been like microsoft, they're hoarding it, hoarding it, hoard iing it. i'm not sure what. they're used to having a lot of cash. i worry about the apple levels of stock. everyone has to have it. everyone has overbought it. so i think they'll probably get around to it but apple will do it in their own time. >> christian, thank you for coming in. it's always great having you on the set. >> coming up, another online ipo prepares to start trading day. yelp to me sounds like yahoo! what does it do? >> customer views. >> that's right. i do know that. up next, plus, at&t says good bye to unlimited data plans. i've talked to andrew about this had. i haven't talked to becky. verizon already did this. you know that. a while ago. >> i think it's -- it used to be unlimit unlimited data where you could

only use so much. at this point when you have videos downloading and you have a million things going on. >> what it means for users and it's just for people that weren't grandfathered in? >> no, no, no, this is for everybody. >> so new people -- >> this thing called throttling. >> that's what this is, like a speedbump. >> first as we head to break, a look at -- they'll throttle you or break your kneecaps. a look at yesterday's winners and losers. it was wonderful. >> bravo. >> i loved it. >> it was great. >> it was pretty good. >> well, it wasn't bad. >> there were parts of it that wasn't very good, though. >> it could have been better. >> i didn't really like it. >> it was terrible. i have to be a tree in the school play. good. you like trees. well, i like climbing them, but i've never been one. good point. ( captain ) this is your captain speaking. annie gets to be the princess. oh...

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♪ good day sunshine good day sunshine ♪ justin bieber song -- we're back? >> we're back. >> good morning. welcome back to "squawk box." i've never seen "rent." you have. admit it. >> admitted. >> how many times? >> i am joe kernen along with becky quick and andrew ross sorkin. at&t is ending unlimited data plans. they are saying they will see much slower speeds if they exceed a new monthly usage cap. at&t is trying to increase revenue by pushing expensive data plans and sophisticated

devices as a deal with a user base that's no longer growing quickly. supposedly if it's -- they watched ten hours of it t tv on phone or ipad. >> people are doing it on iphone. >> i can't believe you would sit there and watch that thing. >> you could -- with the new screens, did you get the new black bberry yet? >> let me guess, and you're watching "the office." that's what you're watching? mm-hmm. right. that's what you're downloading. >> yep. >> sure. >> can i tell you people commuting, on a train, into the city, they can watch for an hour on the way in and out. >> and it's like cable television. >> i know where you're going. >> you're there. >> you can watch repeats of "si "seinfeld." you could watch "too big to fail. ". >> i was looking for the -- >> i know where you're going. there is another version of "too big to fail l".

>> what is it? oh, yeah, another version of it goes along with the music. there is. >> is there really? >> there is. >> kodak is selling its online photo services business to sh shutter fly, so you take the s and you put it on tiger and take it off wood. >> i get you. >> too big to fail. >> shares of shutter fly rising on the news. >> how depressing is that, $24 million. >> right, right. the sale kicks off bankrupt kodak's relaunch as a slimmed down version of itself but analysts say the patent sale will be crucial to the turnaround and that may be months away and yelp is botch the expected range of $12 to $14 and values the company at $900 million. the online review guide will be trading under the nysc today or on the nysc under the symbol -- where did they get that?

>> creative. >> and the company's co-founder and ceo jeremy stoppelman will join us at 9:50 eastern. of course it's been a very busy week on the economic front and joins us on the set again for day two of her premier here -- >> i'm back. i guess that's a good sign. >> the show has gone off the rails so try to take us back. >> i'm warning that we don't have a jobs report today. >> today was supposed to be the day. >> we'll get it next week. there's actually a lot of interesting data we can talk about. obviously it's the thing people want to though. they want to know how the economy is doing, the labor market is doing. gallup is out with a little bit of a survey talking about what it thinks is going to happen with the jobs report, thinks it will tick back up in january. but data does especially with the unemployment rate tend to be higher than the labor department. interesting data on what's happening across states so we've seen a drop in unemployment in 2011 and many of the industrial states the biggest -- the state

with the biggest decline in unemployment last year, do you know what it was, joe, guesses? >> biggest decliner? >> in the unemployment rate. it was michigan, yes. >> the highest number. >> exactly. not only was it a high number but what we saw in the auto sales data yesterday. ought 0 owe production is up. between ougauto productions, a little bit of a comeback and industrial production and agriculture, the industrial heartla heartland. again, it helps if you're starting -- >> with a high base you figure you can knock it town. >> the dakotas are like 2%. >> leading the nation in terms of joblessness or in terms of having a job. their rates are still in the 4% or 5% range. what's interesting is if you look at the share of people working in those states it's like 68%. you compare that with a california at 56%. you compare that with a wf with wf, the worst -- >> what's the worst now? >> it's less than 50%. >> it's nevada. nevada. we might have that. >> nevada or nevada. >> i'm sorry. >> we go back --

>> we don't go back and forth. there's a huge. it was ended a long time ago. brian which wiilliams has done n it because we got so much flak. >> a lot of the states hit high by the housing bust still have the highest unemployment rate and as time goes on it becomes more and more clear with these big housing booms first in and first out is not happening. they tend to be first in and last out. it's a lasting legacy about what's happening with the u.s. broadly. this isn't a case where you're california, you have a housing bust, no, they tend to be out and stay out and these problems become structural. >> how come there's such a higher percentage of people who work in the dakotas? >> there's jobs. it's energy. that sector is doing so well and there are so many people who go to those states and work. they talk about a shortage of drivers and people in the industry. if it you're looking for a job, it's not hard to find one. they probably just draw a lot of people into that state to work. >> florida is still high, right? what's mississippi? you think of it as a poor state

but they have a big offshore industry. >> they do so you don't see mississippi at the top. they tend to fall towards the top but they're not the headline. >> so i got an e-mail from a guy who owns a number of deny t dentistry -- >> oh, no. >> he thought this dentist indicator was it terrific. i was going to ask, is there another indicator ahead of f friday that you will bring us? >> i may. i'll see what i can do. >> thank you for being with us. >> thank you for having me. >> appreciate it. joining us now from the cme, phil streibel. phillip, i thought that as i said it. am i right, if phil? >> you've got it. >> tell him it's bernanke. >> oh, man, you remember that? >> joe remembers everything. >> joe, back a few minutes ago were you talking about at&t and the data plan, who is using that. i have so many customers in myself that use cnbc pro all day

long. >> really? >> we're just running that much data, 10 to 12 hours a day straight. >> wow. does management love you today. what is it called again? >> cnbc pro. >> that's a very powerful tool for you and for others, isn't it? it doesn't get any better than cnbc pro. >> i hear you. >> say it again. >> we're going to be focusing on the oil market. we saw it break through 110 in the blink of an eye yesterday on rumors of a saudi oil explosion. those rue horse were later denied. we saw oil come back off pretty quick. but it's going to be completely f focused on iran here today. if we start breaking through like that 110, 115, 120, it will be very damaging to the u.s. economy. i was reading yesterday any $10 movement in the oil is a direct impact on national gas prices of about 25 cents a gallon.

so we start getting that upward movement, it's going to be a serious crunch out there. >> and i guess, phil, that tells you that the momentum is totally to the upside. they are going to jump on any rumor, any piece of information they get? >> absolutely. so there's almost like a built-in put option in there. i think we start coming down to $105. you look at the upside just a little bit. but unless -- there's a vote coming out in iran here today. it's like a tentative vote. they are saying if there's any kind of -- with the west, if there's any kind of like agreement where it seems like the government might be a little bit more lenient to the west, it might start coming down a little bit but i don't think that will happen at all. i don't trust iran whatsoever and i think that the upside mome momentum is there so you want to -- if you're going to short it, you have to be ginger. >> okay. phil, thauch and have a great weekend, okay? >> thank you. send in your comments or if you have any questions about anything you see here on "squawk," e-mail us. coming up, is it time to buy

into the housing market? we had a bunch of people already saying that, warren buffett, donald trump. two members of the exclusive icons. we'll see how you can play a call by the aforementioned oracle next.

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i would buy a home. >> housing is one of the great investments right now. >> i buy housing all the time.

people say what should i do? go buy a house. >> joining us now finance corporation vice president and chief market strategist barry habib that so understates this man's tentacles which go into the broadway show production, a huge hit. are you still doing the movie "rock of ages"? >> we are. june 15th is the scheduled release. >> but you made your name here for 20 years talking as an expert on mortgages and everything, housing. are you disagree with buffett and trump. go ahead. do you think they're going to be right? >> the last time i came on we talked about this. i think that there are signs that housing is definitely looking up. could prices go down a little bit from here? yes, they could. >> the single family housing -- buffett said if he could, he would buy a couple hundred thousand. it's too hard to manage. there's no way --

>> but if you're looking long term this is a really good time because there's a confluence of factors between low interest rates that you can get to finance it which is one of the things mr. buffett cited. >> is it 30 year? is. >> i like 20-year fixed rate mortgages. >> they're hard to find, though. >> no, you can get them anywhere. you just ask for them. it's not like the first item on the menu. it's only slightly more expensive than a 30-year fixed and a lot cheaper than a 15-year would be and are for the consumer you build up so much more in principal pretty quickly. if we'd done more of these 20-year transactions we wouldn't have had the housing crisis we have. >> then why wouldn't you take as a consumer prefer to have a 30-year that would allow you to pay more up front so if you wanted to you could pay more on everything and build your principal faster? >> you're right. you can have the option if you wanted to make additional principal payments as well if that was your choice. >> why not --

>> but it is a cheaper -- >> it was the census bureau who said individuals who live a home live there approximately 13 years. we know it's a moving target. people are living in their homes a longer time. >> so a ten year -- are there a.r.m.s that go ten years? >> a lot do and it's a very good choice. the interest rate differential on a loan below $417,000 isn't that much so it's not that attractive. once you get into the jumbo c categories. >> how much? how much is the interest rate difference? >> it could be about three-quarters of a percent or half a percent. >> if you don't have any plans to move out soon, maybe you'll be gone in 13 years, take the average number, if if you get that 30 year -- my other question is if we get into a rate environment in the next few years, where you really start to see higher rates coming, do you think it's a good idea to be in one of those fixed? >> i do. and that's one of the things people tend to overlook is fha

mortgages. i know april 1st their fees are going up. initially they start off cheaper than a 30-year fixed would be conventionally. however, the fees that you have with fha, and it depend on your credit score. it depends on the amount you are putting down, make it more expensive. but the hidden value that you have is that this is an assumable mortgage and when you go down the road if it's 10 or 15 years, can you imagine when rates are up to 6% and you try to sell, yeah, but you can get 3.5. >> or at 8%, here, take my mortgage. >> it's literally either tens of thousands. >> i remember that because my parents had a loan that was an assumable mortgage that they were able to sell our house at when rates were 16%, 17%. and it was a big deal. >> a big deal. you think about it, maybe it's an insurance policy, if you lack at it that way. i pay more perhaps every month now about but when it comes time to sell my home it will sell a lot more quickly and maybe i'll get more money for it. >> right. >> that's great.

>> the other question i had is when you look at how much people have to put down right now, we say you can't get those 1%, 07s down, how much do you have to put down? >> it's a good thing you can't get the zero percent down transactions and you do need good credit and you do need a job and things like that. fha will do it with 3.5% down. that's something people overlook. i hear, well, you need that 20% down payment. not true. conventionally you can go 10% down. fha 3.5% down. >> that seems crazy. >> the thing that got crazy and got out of hand is not only 0 zero down but being lax on the credit scores, even doing no income verification. heck, do you have a pulse, we'll give you a mortgage. that was crazy. the underwriting guidelines have gotten smarter. some say they've gone overboard. i don't know. but the performance of transactions that have closed in the past two and a half to three years really is doing very, very

well. >> is construction loans, are those the same? do you need more down on a construction loan? >> it tends to be more complicated. it depend on if you own the land already, how much you own. do you have financing on the land. but some people are doing construction loans. >> they do have construction that immediately turn into a permanent loan. >> it will transfer but, you know, boy, you'd better -- it becomes your second job watching construction transaction take place. >> because there are so many dots -- >> so many moving parts to it. it's going to take away from what you do. you'll have to spend a lot of time babysitting it. >> what are you supposed to do then if you build a house? >> well, if you're building a house from a builder, they do that for you, so to speak. if you're doing a construction loan yourself where you're watching it and you're hiring the gc to take care, it could be a lot more work. >> it could be like building the house yourself and getting a loan? i'm pretty handy. i don't know, i could farm out a few things, some of the wiring,

handle everything else. >> the tiling you can do. >> stone work. >> how many people in my house change a light bulb? all of us really. i would call you first probably. >> i'll come out there and bring a hammer with me. >> all right, good. we have hammers. >> sounds like more fun. >> friday, i don't know what it is. >> it's been a long week. we're ready to go. >> i'm not here on monday. >> barry, thank you. >> thank you very much. when we come back, a conversation fit for a friday, unlike this conversation we've just been having, we're going to head to the chairs and talk about the stories that are catching our attention. and then later, the newsmaker of the morning, he is the co-founder of netscape and a facebook board member, venture capitalist marc andreessen.

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welcome back, everybody. we're in chairs this morning where we talk about the stories that caught our attention. i don't know if you've seen this story about a frenchman who is suing google. >> i've not seen the story. >> have seen the story, yes. >> is this a joke? >> no. this is for real but you'll laugh when you hear why. he thinks google made him a

laughing stock by its street view cameras where you can go in on these google earth pictures and zoom the camera up and get a view in what it looks like on the street view. it caught a picture of him urinating on his front yard and then the picture got out and now the entire town looks at him as a -- looks at him as a character and he said they were violating his privacy. >> when did he do it? of it in the daytime? >> apparently it was in the daytime but over a fence. he thought he was shielded. do we know why he was doing it? >> it's his own garden. >> exactly. >> does he have dogs or anything? >> keep people off the property? >> no. it's just that if -- >> where your going with this? >> my lawn. i'm not saying i have or

haven't. but if it was night in the summer and i'm out there with the dogs and they are just peing every where and i'm drinking beer -- >> could tell. the sympathetic tune. >> not from personal experience i'm sympathetic you should have privacy in your own house or yard and not think any satellite will be put on. >> in the summer maybe. >> you think didn't think about google earth? >> no. i have a golden retriever so every where she goes because on green grass it turns a different color. >> now you gave the google watchers something to watch. >> knock yourself out. >> quick story identify been looking at, aereo -- >> go back down. go back down. >> joe. >> i have nothing.

>> i was going to update you on just all the in trade data. >> go for it. >> all i was going to say -- >> you have actual news. >> aereo was this amazing new technology that allows to you stream broadcast tv over the internet on to your ipad and tvs. nbc, cbs are suing to block it. it will be a very interesting legal battle because they came up with a clever way of managing it all. >> i haven't seen the lawsuit to figure out -- >> that they are retransmitting broadcast tv over the internet but in this case you're effectively leasing an antenna for each subscriber and that's the back and forth. >> on in trade we got below 60 on obama's re-election. romney now at 84. forgetting the nomination. 33% on the possibility of him being president. >> "squawk" is coming back.

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getting america back on track. former honeywell ceo and guest host will weigh in on the markets and global economy. >> special interview with visionary marc andreessen. >> is putin's ship about to sink? steve liesman is in moscow ahead of the weekend's presidential elections. a closer look at the state of russia, crony capitalism and what it means for the global economy. as the second hour of "squawk box" begins right now.

♪ >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. online review site yelp is set to make it's wall street debut today. the offering share price of $15 late thursday was above the expected range of $12 to $14. it's valued at $900 million. investors anticipate the launch of a new apple ipad next week the company may also be set to push out a cheaper alternative. the jpmorgan analyst says it will relaunch a less expensive version of the ipad 2 to compete with cheaper tablets. cbs and madison square garden are considering investing in a group that is considering purchasing the los angeles dodgers. they are interested in as a way to secure tv rights.

watching the futures on this friday morning, check thing out. we're looking at a slightly lower open. those dow futures down by just about 14 points. s&p off by 1.5. >> our guest host, ceo of honeywell, long time guest host, great to have you larry. i was thinking about these discussions we had all week and i wonder if you weigh in the same way and that is there's one camp of people that look at the acrimony and stalemate in washington and they are disgusted because we're not doing anything and why can't we do bowles-simpson. you're in that camp. i can almost see this was set up in the last, you know, there was bush and iraq, people got mad about that. people elect obama and he does

obamacare. the tea party comes in in 2010 and these 90 guys were elected to come in and not do anything in terms of spending. so this should all be expected -- should we be looking at this cynically or is this the way it works and we have to settle this in november? >> think all of the above. you should look at it cynically and you should have expected it would have happened. if you had one encouraging notion to the american voters regardless of your political persuasion it would be is that elect people willing to collaborate, willing to act in the best interest of the country instead of trying to poke a finger in the eye of the opposition party. we need some action in washington. the debt, the economy, et cetera and the fact of the matter is we got have people who are willing to put the company ahead of politics. very difficult thing to do but absolutely essential in terms of the american good. >> so, that's not the way the

last few elections have been. >> no. absolutely not. >> 2008, a statement was made on the left, i think. in 2010 a statement was to bring it back the other way. you think there's a possibility that 2012, that we get more to the center? how would we do that? what would it be? the house, the white house, the center? >> american people are fed up we can't get anything done in washington. so i think you've got, number one, elect people who are willing to compromise or pursue unity on one hand and also i think there's an expectation if you don't get some of these things now the country will get in worse shape. >> would you throw anyone who signed the pledge? >> that's too strong of a term but it's idiotic to sign it. how can you make statements like

that when you don't know the circumstances. i can't imagine anyone signing it. >> they are on the right track. >> they are on the right track. >> you don't want to throw them out. throw out everyone who wants to spend more than what we have. the only reason i raise it is they suggested you have to be willing to compromise and part of that -- >> you guys need a pledge where i'll continue to spend money and make things fair no matter how much it is and no matter how big the deficit is. >> but, if you look at what simpson-bowles said that there's raising revenue on that and so people would have to violate the pledge they made. >> the march about inial rates go to 24%. >> that has to get violated -- >> instead of raising revenue. >> somebody's taxes are going up. may not be across the board. >> it's a good example of what's going on. have you heard a politician yet who didn't favor simpson-bowles? how come it never gets done.

>> actually, i take that back. we had jim hen sceson on happen didn't like simpson-bowles because it didn't address long term expenditures like medicaid and medicare. >> more than what people agree to on the left. >> but i think that's going to be the new twist, if there's a push for simpson-bowles the new twist is it doesn't do enough. >> here's the thing with simpson-bowles, most people love to say oh, i love simpson-bowles and they haven't read it. when you read it there are things that i like and there are things i don't like. i would be willing to live with all of those things but there are other people in the world who would read it and say -- >> you can't go cherry picking. you can't pick the things you like and throw out the rest. >> i like simpson-bowles. i'm telling you simpson-bowles makes sense and at minimum is a good starting point.

we had ed rendell on the show yesterday. we asked the question if it was an up or down vote on simpson-bowles in the country his answer was he thought it wouldn't pass. >> ed also said he loved it and loved simpson-bowles but he still wants to go back to the clinton era tax rate of 29% and it's 24. >> it's 28. >> it's 26. >> here we are. here we are all saying how much we love simpson-bowles. >> but the point is this. we, whoever gets elected you got to fight for america's competitiveness. overhauling the tax code is one way. putting in simpson-bowles is another. >> 26. >> 26. >> that's not high enough four. >> we got to do some things to make the country more competitive. everybody will sign up for that whether we get anything done or not who knows. >> we need to do a lot more than

put programs in to get competitive. we need to get some programs out of the way. >> in terms of the economy, 24% of the gdp now is services. that's the one that feels the brunt much these regulatory changes. i was looking the other day, you wrote a nice column about dodd-frank. you gave it more support than it deserves but that's all right. beyond that, if you look -- do you define market making from proprietary trading, there's 17 specific initiatives to tell the difference. if you need 17 initiatives to tell what is prop trading it's probably not worth very much. there's merit in the bill but it ought to be streamlined. >> larry, i've been on this rant today because i want to give a speech. the icd-10. we're at icd-9 which is medicare reimbursement under obamacare. icd-9, 18,000 rules.

icd-10, 140,000 rules. but nine separate rules are reimbursement if you're injured by a parrot. there's three separate rules if you're injured by a flaming water ski for reimbursement. people say we need this and it off sets the bureaucratic issues. does it offset the bureaucratic issues? being that granular -- that's a prime example. dodd-frank is the same deal. >> what do i get if i'm injured. >> it depends. there's nine different ways. none of them are pleasant. >> it's crazy. >> depends which body parts are involved. >> you talked about the secretary geithner's column in the journal? >> what do you think of it? >> he gets up at the top. scale and says this is good and you got amnesia. some of it is pretty good. i think increasing capital requirements makes good sense. but why not stream line and take

the junk out of there so that, you know, it's concise as opposed to more granular and it has some chance of doing some good. >> who has forgotten about the financial crisis when this administration reminds us that the reasons that things are so weak is because of what they were handed to. i don't have amnesia. you told me every day. >> remember, joe, america is back is what the president says. >> you don't buy that? >> 15% unemployment. you think that's back? i mean -- >> you talk real unemployment. >> real unemployment is 15%. it's not back under those kind of statistics. >> different question. is it in better shape than you thought it would be -- >> there's a financial crisis. >> than three or four months ago. i would say i'm surprised that it feels better than i thought it would be three or four months ago. >> i would agree with that. i think it's better than a lot of pundits think too.

we're going to 3 gdp instead of 2.5. this is the worse recovery from a recession you guys have heard in history. is it a little bit better? yes. is it what it needs to be, you not even close. >> you saw the editorial about that speech about coming back and that's also sort of, i don't know, oil print it out for you. it's setting up more of the -- you know it's not fair. the rich people are not allowing the middle class or people that, the have notes not to get anywhere. i'm changing that. it was more politics, don't you think? >> a little bit of that. >> that's what this election will be. they decided it will be that way. >> one of the things that's not going discussed in this election but is below the surface is this. the average job in america is gone. in other words, you need higher skills now in order to participate in the economy and

we've got to get people more of this kind of training or there's going to be always a high unemployment rate and always be dissatisfaction as well. that's not in the good interest of the country, i don't think. >> it's me now. comments, questions about anything you see. shoot us an e-mail. squawk@cnbc.com and follow us on twitter. up next auto sales get hot in february. mike jackson will join us after the break to talk about surging sales and the possible impact of a higher pump price. "squawk" is coming right back. let's talk about fees. tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee.

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and free postage to use during your trial. go to stamps.com/tv and never go to the post office again. . happy friday. we're back-checking futures right now. we have some red arrows across the board. not horrible. dow will open up about 23 points lower. s&p 500 is off by three points. you can see there in our new percentage open off by .18%. at&t is ending unlimited data plans. the company is now telling subscribers they will see much slower speeds if they exceed a new monthly usage cap. that means that users will have to start paying more as they download more video, stream more sue i can and use more apps. at&t is trying to increase revenue by pushing new apps. companies who allow you to

stream things are facing this. >> you like this throttling? i want to get a message on my phone saying you have gone over the limit. if you want more, pay up. >> yeah. >> this idea that they are basically going -- >> if you didn't pay up they would have to throttle you anyway. >> i'd say turn me off. >> opportunity turned off. >> the idea they will make it basically so painful for me to get access. >> the guy that sudden, two minutes slower to download. >> two minutes, joe is an eternity. >> i know it is. >> come on open perfect way to annoy customers. of all the solutions that's the worse one. >> it's how you avoid breaking your promise to these people of unlimited data. you can still have it but we're going to slow you down. unlimited data used to be how many people can you text? >> there's a number and that's the end it. >> if honeywell had been spending billions of dollars building out things and then google and apple came in and

used all, without spending anything and used all the -- you're making no return -- you're a user now. >> i think it changes. this is the worst alternative they could have picked. they've been criticized by their customer base as well. i think andrew's solution is pretty good. say look you have an option at this point. pay for it or we turn it off. >> we turn it off. >> one or the other. >> you press one button it goes to your credit card. >> with your disposition can you imagine waiting two minutes. >> have a blackberry. i never downloaded anything. >> not a good customer decision. >> let's talk about auto nation announcing a 17% jump in vehicle sales for the move february when you look over a year ago. i want also has a 20% surge in premium luxury cars. joining us right now first on cnbc is auto nation's ceo and chairman is mike jackson. your numbers are up 17%.

did this come as a big surprise to you? >> well, it's stronger than i thought it would be, becky, but you know i've been saying for two years now that the auto recovery is sustainable, it's real, and it's a bright spot in the u.s. economy. i think what's so interesting about these results sthalt in the face of rising gasoline prices to see these kind of results shows how far the economy and how much the auto industry has changed from the summer of '08 when we had $4.11 average price of gasoline. back then on our showroom floors if you wanted a car that got 40 miles per hour gallon we had three to offer you. today we have over 40. if you want a truck that got 25 miles toe a gallon today we have 20. today we offer over 40. it's a real transformation for our industry. it's embraced fuel efficiency and the cars that have these

high mileages are very stylish and fun to drive and the trucks are using technology, down sizing from big v-8s to six cylinder engines, vehicles like the jeep cherokee has eight speed automatic transmission. so technology is making these gains and the customers have shown a willingness to pay for this technology. so it's a big change from summer of '08. >> are people coming into the sales room and having been impacted in the climbing of gasoline in terms of what they will agree to look at? gas guzzlers nobody wants that right now? >> well, no. february everything sold across the board. pickup sales are up 20%. the big story is whatever size vehicle you want there's technology that gives you fuel efficiency.

that was not true in the past. you had to down size to get fuel efficiency today. you do not. now the industry posted 15,100,000. this is what we talked about last year. so i'm not raising my forecast because there's a lot of pent up demand for these products. hundreds of thousands of customers postpone purchases last year because of the lack of availability of japanese products. so in february you had across the board if creases including our asian products being up 16%. that will take a few months for that pent up demand to all be taken care of and then i expect a lower selling rate than the 15,100,000 that was achieved by the industry in february. >> mike, larry here. i looked at the auto sales by

models the other day and it was clear that it d-in fact, sell across the board but historically the hard begins on the smaller vehicles has been less than what the american manufacturers are concerned. >> if you go back ten years ago the industry made nothing on small cars but it's changed. the march fwigins on percentage for cars is the same as for trucks. the trucks have an average higher selling price so the absolute selling margin is higher on trucks. the other thing to look at, larry, that's really interesting in february sales is that incentives were stable. in case of general motors, dramatically lower than a year

ago and the everything transaction prices about $1700 higher than a year ago. so the consumer is willing to pay for technology, innovation and style, all of which is very profitable for the industry. so, yeah, i would say margins are maybe under a little pressure but nothing like in the past. >> mike, i just got a question sent in by an economist at miller and he's got a question for you too about the mild weather that we've seen this winter. i know that doesn't generally affect places like florida and texas where you have a large part of your operations. does mild weather help in other states where you typically see a slowdown in auto sales? >> well, again, february, you can't find any weakness wherever you look. so geographically we're strong all across the country. weather for us doesn't make a

big difference because we're primarily a sun belt company. certainly it helped in the northeast. but that's not the explanation for the strong sales in february. but, again, i don't think 15 million is the run rate for the year. i think it's more the catchup with the japanese. and we're still, though, going to have a selling rate for the year of 14 million which will be a strong double digit increase from last year. >> and five bucks is the new four, mike, is that what you think? >> i think so. i think so, joe. you know, if you go back to the freak out and we had a total freak out in the summer of '08. >> freak out. >> we were taking in trade cadillac escalades. people were just out of their minds. now imagine gasoline went from $3 to $4 back to $3 in a six month period. so it was very disorienting. we've seen $4 now twice. it's a more gradual increase

this time. so i think it's $5 a gallon before people start freaking out. >> all right. >> freak out is a technical term. >> mike, thank you very much. >> very technical term. i can scene you a photograph from the showroom floor of the man turning in the cadillac escalade on the smart and i would say that person has freaked out. >> okay. >> they come back three months later and say they made a big mistake. >> mike, thank you very much. great talking to you. >> have a nice morning. >> shutter fly making waves in the online photo field and the world's richest oil man harold hamm. it with the world. you landed the u.s. tour ? done. this is fantastic ! music is my life and i want to make the most of it thout missing a beat. fly without putting your life on pause. be yourself nonstop.

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kodak is selling its business to shutter fly for $20 million. the sale kicks off the bankrupt company's relaunch as a slimmed down version of itself. analysts say kodak's sale will be crucial to its turn around and that could be months away. hopefully we'll have a b handle on it. >> as posed to 24 million. kodak hasn't come that far. >> up next, marc andreessen on the future of technology.

we'll get his outlook for silicon valley and much more. and later -- [ speaking russian ]

welcome back to "squawk box" on cnbc. i'm becky quick. let's get your morning headlines. passengers scheduled on continental's fight 1267 from phoenix to cleveland tonight, you're going to be a part of history. this is the last ever continental branded flight comes two years after united and continental announced their merger. united-continental received their certificate in november and that allows the operation as one single airline. while continental disappears into history another old brand name may be making a come back. nissan is bringing back its old name datsun. we're joined by a very special guest one of the world's

top tech investors, venture capitalist joining us from new york is marc andreessen. co-founder and general partner i should also say a board member of hp and facebook. i don't know if you're most famous for this or not, co-founder of net scape. people don't think about netscape as much as they should. is that a decent introduction to you. >> that sounds good to me. >> know you can't speak to facebook's ipo and some of the issues related to companies that you're on the boards of right now, but given that you did co-found netscape and you've lived to what was the dot-com bubble, put in perspective for us, if you corks where we are from a valuation perspective around this entire idea of all these new investments coming out of silicon valley and social media. >> i think in retrospect there was a bubble in the late '90s. there was a two year period

where things went crazy and then there was a crash that hit our industry in 2000, 2001 and 2002. then we went into this winter where the valley was almost dead. then you saw a whole crop of extremely promising companies get founded, yelp is pricing its ipo today. there's a whole series of these companies, fantastic cover story in "business week" this week on twitter and twitter becoming a big company. a whole set of these companies are founded five, six years ago and flowering. a whole new crotch companies found in the last three years that will do very well. >> do these valuations make sense? i ask it only because, some people would argue it feels a bit like 1999. >> yes. i can tell you i was there in 1999. this does not feel anything like 1999. on the public side, tech stocks are tratding at a 30 year low. i think the tech stock, the public market is traumatized by

the dot-com crash. investors and reporters and analysts and everybody else are determined not to get taken advantage of. it's what people remember. on the private side there's a fair amount of enthusiasm. a lot of these companies are building significant businesses. there's been a set of companies in the last five years that have gone from a zero to billion dollars in record time. the markets are so much larger. so many more people online today than in the '90s. we fought the entire browser microsoft over 15 million users in the late '90s and now we're over 2 billion and smart phones is over 5 billion. >> you compare tech to industrials. larry has a question for you. >> marc, i'm interested in the criteria you use in your firm to decide whether to pursue an idea or not. you see a lot of great ideas. you people have an operating

background. how often do you find a good idea that's coupled with a great operator and what do you do about if you have a great idea but have reservations about the operator. >> not nearly enough. we saw 1500 companies investment opportunities that were referred to us by people we trust. we of course can only invest in a very small fraction of those. we're targeting specifically in our firm the founder ceo. so the magic for our company is an entrepreneur who has a great idea, able to build a product, express the idea to the market, able to then start a company and build a company around that and hope to become a ceo. easy to say, hard to do. that's the bill gates model, larry ellison model. and now marc zuckerberg model. that's the ideal circumstance. we try to support those people to the hilt when we can find

them. when we do have founders that have great ideas who are not great operators we work hard to bring in the right kind of operator into the company, an operator that can partner with the founder and work with the founder and keep the founder and keep the founder's strengths. when that works what eric schmidt was able to do, we think that's a formula for success. >> one of the conversations we have around this table often these days is politics and policy and what's going on whether it's regulations or taxes, simpson-bowles was the conversation we were having before you came on. i'm curious, whenever i spend time in silicon valley, oddly enough it feels like there's a disconnect or maybe not a disconnect that's not on the radar. people are spending their time to look at the product, trying to innovate. this stuff in washington doesn't matter. am i wrong? >> mostly you're right.

in the valley people try to run their companies and they don't have spare cycles to spend on larger issues. many of my friends are down on the current economic environment. a lot of people are down on the current fiscal situation, the budget deficit. simpson-bowles is a great friend of mine. i personally am a lot more optimistic. i think our founding fathers specifically designed a political system that was intend ingrid lock almost all the time. i think their plan worked. we have these very big long run fiscal issues but we have a long time to figure them out. these things will play out over decades. from a practical standpoint most of the things that entrepreneurs can do have to do with building our owe over the next five years. >> if there was one thing you want washington to do when you think about job creation and innovation coming out of silicon valley it would be what? >> i think it would be to attack

regulation. that's the one thing that's getting very problematic. i'm a believer that sarbanes-oxley is an example. it was put in place to prevent from what i can tell to prevent the next enron or worldcom. so what it's done is killed the ipo. so, the public markets are much less accessible. >> what's the problem specifically with sarbanes-oxley when it comes to the tech ipo? >> sarbanes-oxley just introduces a new category of regulation and controls and responsibilities for companies financial staff, legal staff, board, audit committee. that translates to enormous amount of time, energy attention to management that's busy building their company. legal liability, personal certification of financials by the ceo and cfo. i'm not in favor of another

enron or worldcom but most companies i work with aren't out to defraud anyone. the big frauds haven't come out of the valley. i think it's been a hammer applied to a whole series of industries when it was intended to address a special circumstance like enron. >> i want to turn the conversation to china. you're on the board of hp, manufacture stuff in china. are we ever going to get these jobs back? there was a question that president obama put to steve jobs before he died. and steve said that he doesn't expect home to ever come back. i'm curious do you think they could come back? should they come back? if they were to what do we do to get them back? >> i'm a believe in a positive sum. i'm a believer in free trade. a rising tide can lift all boats. i see no contradiction to america creating cherry blossoms in china and the united states.

the iphone is assembled in china. but the software is being built in the u.s. we're doing quite a join our industry of building high value jobs in the u.s. along the way a lot of lower skilled jobs is being built in china. that's great for china's development and good for our national security. our challenge is to create the new industries, create the new business, create the new jobs. trying to hold on to the jobs that we historically had is a recipe for failure and is the wrong way to think about it. >> as a romney backer do you think he has a better vision for the regulatory environment that would be better for silicon valley >> yeah. at least so far i'm a romney supporter in primaries. he's a guy that is a dyed in the wool businessman. he's formed a large number of companies. he understands what it's like to be in business. makes him attractive to people

like me. i think he's got a great view on regulation. i don't like his view on china where he's essentially calling for a trade war. i think that's a terrible idea. i hope he stops doing that. with respect to rrgs i'm a big supporter. >> you travel in disconito on the west coast? is it okay or do you get a lot of flap? >> i was a big clinton supporter in '90s. >> you're now a republican. >> i turned 40 last year so i figured it was time to make the switch. >> that's right. that's right. if you're 20 and a conservative you have no heart. >> marc, i know you spontaneity lot of time looking at social media and following a lot of these companies but do you spend any time on social media, on a twitter or facebook? >> a ton of time. number one just professionally but number two it's actually a big part of how the valley is

work. one of the thing we're seeing in valley is the entrepreneurs are connected to each other in a way they weren't used to be. that's over twitter and blogs and the umbrelumbler. a lot of recruiting for our companies happens now over networks like linkedin. >> i was asking because i was just trying to find you on twitter. are you @marc -- >> no. i tweeted exactly twice. my first tweet was before they invented the word tweet. >> okay. but you're not tweeting actively? >> not currently actively tweeting. >> i was going to ask -- >> i hated to pop your bubble. >> no. did you know?

>> i knew he supported clinton and gore. i didn't know -- it's okay, marc. >> marc we have to let you go. >> i'm curious if marc has a strong view on carried interest. it's a topic we talk about only because the venture capital community has oftentimes tried to separate itself from the private equity community. i'm curious whether you would try to do that in this case? >> everybody has their personal view on this. i can only represent myself. my personal view is carried interest should be treated as ordinary income. it's a fee for service. incentive fee. somebody else's capital. there's no log skrik to the current tax treatment. i would favor reforming it. >> interesting. but it's optically, not what -- it's not worth the wrap capitalism. the thing i've said, when you have halo tax rate, if you've made a lot of money and paid ordinary income on it and you're

65, 70 years old and got muni bonds and have a lifetime of paying ordinary income i don't know if 16% or 17%. but if you made it and paid 16% or 15% still paying it. we got to get rid of it so the argument end there. >> look, we live in a wonderful country. people like me have the opportunity to be in a profession where you get to do good things for the world and make a lot of money. it makes sense to pay a fair load. the thing i find most entertaining my peers get worked up anthony. tax gets raised on carried interest oil quit. i congratulate them on the decision and be happy to have fewer competitors. >> look around the corner for me. what's the next cool thing. i've been playing on pintrest which seems cool and maybe is around the corner.

what else should we be looking is that >> we're delighted to be an investor on pintrest. 20 people that 10s of millions of people. pins the trest we can't get joe on twitter or facebook. >> i can't remember any of my pins and collect images. it's very cool. >> marc, did you look at yelp? >> we missed on yelp. those were guys we had a long relationship with but we know them now and are very happy for them. they are part of the pay p pal mafia. so we're delighted to be associated with them and very happy for the yelp guys. >> marc, take pintrest off the table. >> don't do anything, marc.

when did you turn 40? >> last july. >> what, you got a late start in life? what took you so long to found netscape. what was that 15 years ago? you were doing other things, traveling? >> they made me wait until i graduated from college which is not training today. today you have to dropout. >> you don't tweet or you got more than one twitter account? >> maybe. oil leave that as an exercise for your viewers. >> what am i missing? nays book i don't want to know about anybody else. i don't want any friends. i have no trouble in staying that way. what am i missing? >> joe, i think you're missing shoe dazzle. >> what does shoe dazzle. >> shoes by subscription. kim kardashian was the launch endorser. $50 shoes. they would look spectacular on you. >> 50 bucks. you just get the shoes? >> yeah.

you don't get kim. you just get the shoes. >> what's the glasses maker? are you and investor in the glass make center >> we missed that one. one of the great new companies out of new york. and that's representative of this new category the commerce companies that are basically category killers. it's a great example that's happening in consumers. eye glasses you think you have to go to the store to get. and customers are thrilled to get glass by mail. >> who did we have on in a asked what was the next thing would be because, i don't know. do people see this social -- did we know that a social connection site would be the hundred billion dollar company. what's the next thing that i have no idea about that people are going to do and she said organizing all the data that they get from all these people and fining a way to make money from it.

is that true or is there something else? >> he's done a pretty good job. >> what else, marc. >> let me give you one more thing. i'm wearing this wrist band. >> the up bands. >> have one. >> fantastic. for those people that haven't seen it it's a wearable computer. it tracks your exercise, sleep, wakes you up in the future. it detects your pulse and blood pressure. it can be shared with your doctor, friends and spouse and can you have competitions to see who is living healthy. it's aimed straight at this trend for people to live healthier lives. it goes right back to the fiscal thing we're talking about, most of the pressing issues in the budget have to do with health care. most conditions that cost us money in health care cost us money if people would get more exercise and eat healthier.

in the long run could be extremely helpful from a physical standpoint. >> is the battery working? mine wasn't. i shouldn't say that out loud. >> has a two week battery life. we have an issue there. problem of building a computer you wear. certain kind of laundry detergents degrade the battery. >> who is winning in your household with that, the bracelet you just told us about? >> my wife wins every competition we have on any front. >> marc, final question. would new vest in apple right now? >> i've bean believer of apple has been undervalued introspect for often years. certainly unvalued at 300. i would certainly say it's undervalued at 500. they are doing an amazing job. the market opportunities are gigantic. i won't blink for a second at the thought it wouldn't go up from here. that's my personal opinion.

>> samsung flat screen, am i going have an apple tv two years from now >> rumor has it they are coming out with a tv. i don't know if it's true or not but it's going to be the best tv ever made. >> you're supposed to say we'll have an hp tv. >> hp is off limits. i can't talk about that. let's talk about the apple tv. >> thank you so much for joining us. a lot of fun. we have to have you come in and guest host. got to get you back over here. >> would love to. >> thanks so much. all right. up next a big weekend for voters in russia. steve liesman is in russia today and he has a preview. steve? >> reporter: hey, becky, joe and andrew, maybe what i should say -- [ speaking russian ]

>> still to come on "squawk box" the nation's richest oil man talks gas price and politics, herald hamm of continental resources is our special guest. plus senator kay bailey hut schoin and john sununu on fixing our nation's energy policy. "squawk box" is coming right back.

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vladimir putin is expected to win this sunday's presidential election in russia but his grip on power may be slipping. steve liesman is in moscow and has more. see, i've been saying this all day. every time i see you there in that coat, it's like you -- i mean you look so comfortable there. honestly. then you speak russian on top of it all. >> joe, does it amaze you how much money the company will spend to give you new material to rag on me. i think it's pretty amazing. i'm on a flight 8 1/2 hours just so you can go at me with the russian thing. pretty interesting changes here i got to tell you. president putin if he win this election and the next one for six years will have been in office longer than stalin ruled russia which is pretty amazing

but i have to say right now he's facing his strongest opposition since he took power back in 2000. it's a winter much discontent in russia. for the first time in the 12 years of vladimir putin has stood astride this country, mass street protests challenge the russian strong man's grip on power. the successor to boris yeltzin. by 2007 putin's approval rating surged to nearly 90% as oil prices and the economy improved. he won the nation over with his race car driving, scuba driving and riding horseback shirtless. but the west is not so sure. back in 2001 then president bush praised putin. >> looked the man in the eye, i

was able to get a sense of his soul, a man deeply committed to his country. >> reporter: more recently bush says i think he's changed. in 2008 in a strange power swap -- putin and dimitri medvedev switched power. but his approval rating of 52% is a humbling come down and some are calling this presidential election putin's last stand. i got to tell you one thing that's very obvious is that russians are richer even average russians. i haven't seen very many russian cars it's all foreign imports. average per capita income is $15,000. it's that greater satisfaction

economically that makes people less satisfied politically and make people say there's going change here even after putin wins the election as expected. andrew? >> thanks so much. great report. i was hoping you were going to end it in russian but next time. coming up, we got harold hamm, named mitt romney's top energy advisor for his campaign. he'll tell us about the candidate's plan to help america get off foreign oil and later treasury secretary geithner talking about the economy. ices? they don't get me. they're all like, "hey, brother, doesn't it bother you that no one notices you?" and i'm like, "doesn't it bother you you're not reliable?" and they say, "shut up!" and i'm like, "you shut up." in business, it's all about reliability. 'cause these guys aren't just hitting "print." they're hitting "dream." so that's what i do. i print dreams, baby. [whispering] big dreams.

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mitt romney turning to america's richest oil man to advise him on energy policy. continental resources ceo herald hamm will join us to talk oil, prices and politics. >> treasury secretary tim geithner warning americans not to forget the lessons of the financial crisis. and neil roland will join us first. we're counting down to super tuesday. which candidate could pull off a decisive win in next week's primaries. we'll ask john sununu and bill richardson. the third hour of "squawk box" begins right now.

welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernen along with becky quick and andrew ross sorkin. our guest is former chief and ceo of honeywell, a cnbc contributor and loyal guest host on "squawk box." you're a cnbc contributor. have you been on anything with "squawk box"? >> i've been on kudlow a couple of times. >> that's fine. checking u.s. equity futures this morning. >> i like the white collar on the colored shirt. >> you do like that. it's brian williams. you know how it started. originally people wanted to replace their color so they had a colored shirt need to replace their color so the tailor would put a white color on the shirt

because it was easier. >> in the old days the collars were separate. >> my daughter gave it to me. your shares are so out of it. >> new you're very in it as far as your shirts go. in our headlines this morning, at&t ending its unlimited data plan. the company is telling subscribers that they will see much slower speeds if they exceed a new monthly usage cap. it's called throttling. that means users have to start paying more as they download more video, stream more music and use more apps. saturday is trying to push more expensive data plans as it deals with a user base that's no longer growing as quickly. yelp is pricing it's ipo at $15 a share. above it's expected range of $12 to $14 and values the company at $900 million. they will begin trading on the nyse under the symbol, yelp. company's co-founder and ceo

will be joining the "squawk on the street" gang at 9:50 eastern. in europe overnight depot sits by banks, central bank spiking to a new record. earlier in the week the ecb issued a huge batch of long term emergency loans to lenders. take a look at european equities at this hour. got some down arrows across the board. not horrible, horrible but not great either. >> presidential hopeful mitt romney choosing the man to lead his energy policy team in charge is oil billionaire herald hamm. the founder and ceo of continental resource. he's now the chairman of romney's energy policy group. thank you for joining us. >> good morning. >> lay out the energy plan as you see it for mitt romney. >> well, there's a lot of good things going on. of course we have are renaissan that's going on that's creating hundred year supply with natural

gas. done a lot of good things with oil. below 50% in imports. a lot of good things going on. this is a comprehensive energy plan. certainly we need wind and solar and everything else as we go forward in the future, perhaps. but, you know, all in all we have some great things going on and certainly we need to embrace what's happening with energy today. >> mr. hamm, larry here, it was reported last week for the first time since 1949 for ten months of 2011 we were basically 80% in sustainability in terms of our own oil generation. and by 2020 we might be the biggest energy producer in the world. is that a fluke or does it have some legs to it? >> it does have some leg to its. we have some wonderful plays going on, resource plays going on across america.

the balkan is a good example of that. and oil plays across america. there's a whole lot of them. so we need to embrace what's going on with energy. we got some great things happening. and we've hung the shingle out as producers in america and said that we can be in the next ten years energy independent in america and we believe that we can and there's certainly some good things. >> what's your biggest problem with the obama's administration to this point. i know you've bean huge critic on the keystone pipeline. >> if we're going achieve energy independence we need a crude oil pipeline in this country. people don't realize it, but oil today costs $12, $15 a girl and that's 30, 35 cents a gallon of every gas. american people don't want to put up with that.

it's very expensive. we need infrastructure here. here we have the bill that's the biggest bill in the world. we don't have a major pipeline going into that field yet. it's deplore scrabble. >> continental actually holds over 900,000 acres there. >> yes. we're approaching a million acres. >> some people who come at that and say this is something that you, obviously, would benefit from if we had that pipeline coming out of there. how do you separate that from your view that this is what america needs? >> it is what america needs. continental and every producer up there would benefit it from. from that pipeline or another. you know, if that one doesn't get there there would be other pipelines. but what really happened, becky, is the delay, we didn't need the delay that's occurred here. i mean this thing could have already, you know, be -- it would be going in the ground and we wouldn't have the cushion, the houston bottleneck that's

hurting production across america today. >> mr. hamm, one of the breakthroughs is the finding of so much natural gas reserves and so-called fracking technique in terms of how to exploit it from the ground and all the issues that surround it. like these methane gas leaks. do you see a way to reach an accord with the environmentalist to frack and take the gas that's environmentally-friendly? >> well, you know, first of all let me say that we've done fracking 60 years and you talk about natural gas leaks. we've had gas fumes come out that have portrayed some of the naturally producing formations whether it's fresh water that, you know, was a gas leak from an oil well and just hadn't been the facts at all. that's not true. that's not what happened. so it's falsely portrayed by gasland and a lot of people took

it down as the gospel but it's not true. >> mr. hamm, we watched gas prices very closely and yesterday's super spike. oil prices are still above $108 a barrel. i'm just wondering what you think we should be doing immediately to try to bring those prices down or if there's anything in our control that would bring prices down? >> well there's certainly a lot in our control and what is in our control is more domestic oil production. that's the best way to do it. you know what we got going on right now is the prices again in the middle east, it's a very volatile region and, you know, there's probably $020 a barrel due to that crisis. here we are 20, 30 cents a gallon gasoline cost to the consumer >> you're somebody who knows what you're talking about. this is your business. this is something you have been at better than just about

anybody else at figuring out. where do you see oil prices heading over the next six months or so? >> well, it depends on what happens in iran. you know, obviously if there's a strike there, you know we could see a spike. i don't think it will last a week. if it was a spike in prices. but we've seen those things happen before and they go away pretty quick. oil price, i think, would settle down into $90 to $100 range without this situation in the middle east. >> and if we see gas prices getting up above $4 a gallon again, what happens then? does that kill demand, that destruction? >> well, it does. it's having an effect, you know. another part of the policy, certainly has to be conservation and, you know, we are conserving. he was using about 21 million barrels a day and that's down to

about 18 million barrels a day in this country. part of that is economy and conservation brought about by higher prices. but it has an impact. >> we'll have boone pickens on next week and trying to get some 18 wheelers converted to natural gas. what do you think of his plan? >> well, i don't think that we should, you know, put additional subsidies out there for something like that. the marketplace, i mean, you know, compressed natural gas is cheap today. you know, if it weren't for the market certainly that's good. and people ought to convert. this is some conversion that's gone on. and, you know, i'm not against using natural gas. we ought to increase, you know, the usage of it where we can. it's a great fuel. so i'm certainly not against use of natural gas. as far as putting a big subsidy on it i don't think it's

necessary to do that. >> mr. hamm we want to thank you very much for your time. we appreciate you joining us today. >> thank you. >> herald hamm is the ceo of continental resources. >> coming up treasury secretary tim geithner warning americans not to forget the causes of the financial crisis and "wall street journal" op-ed today he writes my wife looks up from the newspaper with bewilderment at another story about people in the financial world tore their lobbyists complaining about wall street reform. after the break we'll talk to neil roland first on cnbc. [ male announcer ] there's been a lot of talk about the chevy volt lately.

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welcome back to "squawk box." treasury secretary tim geithner writing an. ed in today's "wall street journal" calling the perils of amnesia. taking shot at critics of wall street. joining us more, neal wolin. seemed like a bit of a concerted effort. this isn't the only place we're seeing a strident defense of some of the reforms that's been put in place. was that an idea that came about because there's, you think the resolve is weakening or we view everything in the prism of an election year. is it more than that? >> the basic point here is we want to make sure everyone remembers what brought us to the place, the financial system we had in 2008 and 2009 was inadequate, toledo the

destruction of enormous amounts of wealth and wrecked our economy and congress put forward and the president signed legislation that overwhelmingly strengthens our financial situation in a way that protects taxpayers and puts us on a sounder footing and those basicing thoughts get lost in the conversation as people try to push off and delay and rewrite and even repeal some of these really critical elements of making our financial system stronger, more resilient and more protective of american taxpayers. >> whenever we react to something like bhapd you know what the biggest worry is. you are hoping there's safe guards with policymakers so that you don't overshoot where a lot of the things become counter productive. to this day a lot of people attribute some of the difficulty in getting credit or the difficulty with banks and profitability. people have even said wall street has basically not gone

but certainly a heck of a lot harder to do business at this point. so this is only natural, isn't it? the durbin amendment is a prime example. if you throw something like that you'll have push back from people. >> i think there's no evidence, joe, frankly that the dodd-frank legislation or bits and pieces that are being implemented as we go forward have had any negative effect on our financial system. fundamentally it's putting our financial system in a much stronger, much safer, much morrow bust position and i think that, you know, that's the important point to keep in mind. it is, of course, the case as regulators continue the process of putting forth rules they need to do so in a way that's thoughtful and takes into account the range of views that are out there. that's exactly what they are doing. they are putting out these rules. people are having their ability to express their perspectives and those perspectives will be factored in. but i think what we shouldn't lose sight of is the importance of the basic set of reforms that

were enacted and the need to get on with the business of putting those things in place. of course they should be done in a sensible way. >> joe, i was being supportive of the op-ed earlier in the broadcast and joe asked me the question which was the right question. if you're a ceo or manager of a bank today representing your shareholders, are you supposed to push back on these rules or not? >> you know, andrew, i think it's absolutely the rights of anyone and we want people to comment and give us their perspectives and make sure that we understand the range of thoughts out there about how these things should be implemented in a sensible way. what we're seeing, though, in addition to that, in addition to just adding people's voices and getting comments and being constructive an enormous amount of money and effort is being spent to delay, roll back and water down a set of reforms that's critical and that's the disturbing piece. >> one of the thing that seems to me that people don't take

into account is the cost of complying with these things and while there's a lot of goodness, for example, in dodd-frank, you would love to see it get streamlined and separate the wheat from the chaff. here we are talking about job creation in this country. trying to be as competitive as possible. yet this enormous burden comes upon us all of which i don't think can be justified. what's your view? >> i think we should be attentive to the cost of compliance. part of the original underpinnings of dodd-frank we had a financial system that was insufficiently regular late. the real question to ask is what are the costs relative to not having the reforms. we saw firms across the country and american citizens and small businesses paid an enormous price not to have the kinds of things in place that make our system strong and resilient. so it is the case it will cost some money for firms to comply with this new set of rules. we think that's a worthy

investment relative to what we've all just been through and experienced and what we might have to be through or experienced if we didn't put this stuff in place. >> neal, there's been a lot of talk about the rhetoric that comes out of the administration. and i'm curious whether you think ultimately the rhetoric -- there's more bark ultimately than bite, that sometimes the banking community, wall street says this doesn't feel good i'm not getting love, if you will from washington but that when you look through the reforms and the details they may not be as bad as some of the rhetoric suggests. >> well, you know, i think from our perspective at the treasury it's not about the rhetoric, really. it's really about the substance, about the idea that we had a system that everyone agrees wasn't the right system. we put in place a set of strong reforms to get ourselves on a better footing and now we should be serious and thoughtful about going about the business of implementing all of that.

that's what we're doing. i think sometimes we get caught up in the rhetoric of, you know, from critics of this legislation this will kill the economy or it's going to kill the financial services sector. there's no evidence of that. it doesn't make any sense. really -- >> it is -- there are costs as larry said. there are costs to this legislation. it may make the system safer long term. i won't dissuade you of that view. there are costs and immediate costs and you can see it in the share price and you can see it in the profits of these institutions literally over the past six months. >> andrew, i think those cold fronts are a pittance relative to the costs we're enduring from the financial crisis that we went through. so the question is what's the right approach. and, you know, we've had ceos in the last week who have been critics of dodd-frank all along who in their investor conference, you know, made clear that this is not in the end really going pair their profitability. of course there will be costs

but it is important for us to make sure that the country is put on a sounder footing and that's a worthy investment. >> there's a whole contingent of people out there that just look at the elephant in the room -- this is a self-righteous tone we need to do this. fannie mae and freddie mac not even part of the regulation and just the name of the bill, dodd and frank, two people most associated with fannie mae and freddie mac. there's a cynical view that you look at what's being done and this is going fix everything with those things looming which were in large part -- it helps the narrative for the white house that it was all the banks and that it wasn't policymakers or societal move. i mean it is an election year and i'm back to my original question. >> well, joe, we've said the reason, the causes for this crisis were multifactorial. there was an insufficient

regulato structure. consumersing took on debt they couldn't afford. banks were part of the problem. we need to make progress on housing finance reform and think through the future of the government's role in housing finance. we've put out some thoughts on that. we've committed to putting more on that. we very much would like to advance the conversation on making sure that we bring private capital back into the housing finance. that we decrease the role of the government-sponsored enterprises and so forth and we'll be saying more about that in the weeks and months ahead and we look very much forward to getting that piece done. it's absolutely important. >> real quick there's another op-ed in the paper today, this one in the "new york times." this article said four years later there's a gnawing feeling that justice still hasn't been served. >> people will make their judgments. from our perspective we want to make sure the structure is

right. april lot of people are looking at whether there were misdeeds that taught get additional attention and ought to be pursued. there was a lot of damage done. a lot of people felt a lot of pain. and so people understandably ask the question who is responsible and what should we think about it. people are working on that set of things here at the treasury and amongst our regulatory brother who are implementing dodd-frank. what we have in place is a strong system going forward. >> neal, we appreciate it. your on the short list, now? >> for what? >> geithner is leaving, right? >> i don't think so, joe. >> all right. thank you. we appreciate your time. >> good to be here. >> he was talking about fannie mae and freddie mac and there were no investigations of congress or no prosecution of members -- >> there's a little bit of that. there's a little bit of banking. >> which perpetrator is he

talking about. >> it's long op-ed. he has a lot of perpetrators. >> we got to be talking about the stories. squawk news wires when we return in the next half hour. jobs, the economy and the race for the white house. former governor sununu and richardson will face off. "squawk" returns in just a moment. look, every day we're using more and more energy.

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our trading block is ready to break down trading day hide. still to come, jobs, taxes and the race for the white house, a conversation with john sununu and bill richardson. "squawk box" is coming right back.

welcome back to "squawk" on this friday morning. let's take a few stocks. shutterfly is getting a positive pop after announcing kodak's business for $24 million. the deal comes as kodak reorganizes under bankruptcy procedures. nokia is a trim b minus. s&p says they face challenges. nokia. i remember when nokia was going to take over the world and now nokia is -- >> slow. >> slow. can i say disaster? is that too strong? >> remember the days you would get a new phone and it would be a phone. >> a phone. a nokia phone. >> my first cell phone was a nokia phone.

>> when i got a cell phone -- >> what did you use it for? >> to make phone calls. >> bingo. >> back then. that was a moment where people had -- only drug dealers had cell phones and then sort of -- >> when you see a movie now -- movies are not that old. there's still some good movies that are not that old where people are searching for a phone booth and when was the last time you put a quarter -- >> on my street. >> superman can use it. >> i'll make a phone call to you from it later today. it's sort of fun. i'll call you collect. >> when was the last time that happened. >> now to our trading block to gauge the is a my narcotics rebecca paterson is the chief strategist at jpmorgan. on set is kelly evans, new c

nabs kelly evans. let's talk about next week. let's talk about, what are we going see when these numbers come out and how do we think about it going into these numbers? >> you're talking about the payroll numbers. >> payroll numbers next week which i imagine are going change or could change the dynamic of how we think about the economy right now. >> i think they are going to reinforce how we feel about the u.s. economy which is better. the weekly jobless claims which are a pretty good indication of payrolls have been trending lower. we're at a new cycle low on the four week moving average this week. that's good news. consensus next week is pricing and payrolls around 206,000, so lower than january's blow-out number. but still suggesting that the private-sector is healing in the u.s., we don't have strong growth but at least it's better. >> we talked with kelly earlier about these gallup number, 8.6 adjusted, 9.1 adjusted. does that mean anything to you or should we write those off?

>> i'm not paying a ton of attention to those, quite frankly. >> sorry, just jumping into the shot. kelly, you talked about the dentist yesterday. i want to go back to the dentist. >> i can put this in some perspective. the dentist thing was my way of trying to say i know i've been cautious about the economy but there's this good side from my dentist. even though we're talking about dow 13,000 the first batch of data out of gate about january were not, have not been that positive. if you look at the ism figures that was february gauging more recent. those decline last week. we'll get the service reading. core durable good numbers were down. spending in real terms was flat. people are taking their first quarter gdp figures down. that's important. that's the start potentially of another trend to assert itself. >> kelly, what you're saying is really important it's part of the reason we're just not continuing to climb higher. we have better news if you look

at car sales yesterday, vehicle sales, best since february 2008, jobless claims good numbers for you up point sentiment which tends to be a leading indicator the global manufacturing pmi yesterday was kind of agh. things are getting better but not gate. for the stock market that's not a bad combo. we have stable growth and monetary policy around the world that's very easy that's not a bad backdrop for cyclical assets. >> your clients call-up and said i missed the last train. i wasn't on train. we were flirting with 13,000. should i be jumping on the train or am i too late? >> oh, i don't think you're too late at all. there's still so much cash on the sidelines whether we're talking about retail investors or cooperate clients. so, i think we've got a ways to go and i do think central banks not just the u.s. but globally are providing an important support for us. but i don't think it's a

straight line. what we see this weekend with russia and iran, we still got a lot of risks out there. it will be a bumpy ride. do i think we're seeing a slightly better tone to the world and a lot of risk is priced in. look at the vix today, we're back down to 17 from the beginning the year 259. we're in a slightly more stable world and that's good news and i think it will help people be more confident. >> with the vix down so much, everything has moved so far in the right direction. you look at high yield issuance, yields on some of these junk bonds. the question is how much further we can keep going in this direction. are we reaching that point of co complacency. is it too late? >> larry, you had something to say? >> rebecca, one question. you've been promoting a high dividend strategy on the premise that the dividend rate goes to

45% as proposed by the president. what do you tell your clients about dividends? >> that's a commonwealth question to ask. high dividend equity strategy some parts of that market have gotten rich much utilities in particular. we're approaching it very actively. we're looking at companies with high dividends but low pay out ratios. i do think if we get a tax change there we'll see some movement out of the space. but i don't think it undermines the broader fundamental view that over time high dividend equities will be a defensive part of a portfolio within that equity allocation. it wouldn't change our broader view on the space but there is going to be tactical volatility of course if that happens. >> happy friday. thanks for being here. appreciate it very much. >> coming up countdown to super tuesday the four gop candidates hoping for a decisive boost. who has the best chance for a win. we'll break down the race with john sununu and bill richardson.

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welcome back to "squawk box." days way from super tuesday and the race for the gop presidential nomination. romney campaign surrogate and john sununu and former new mexico governor bill richardson. somebody sent me something said it feels like '64.

republicans should now just focus on winning the senate and keeping the house and just making sure nothing happens for four years and let's try again in four years when paul ryan is older or somebody else is ready to step in. did you see that piece? >> i saw pieces of it. george will is in his crankiest best much he's a good friend. i don't go to george will for political advice. this country has problems. it's got to nominate a republican that can beat obama. it's got to nominate a republican when he wins the presidency can fix the problems and that's mitt romney. there is a tough primary process, probably made even tougher by the rules. but on super tuesday republicans have a chance to cast their vote for a nominee that will beat obama and then a nominee that will fix the problems and you're right i'm a strong supporter of mitt romney because i'm absolutely convinced that you need somebody with experience. i can't imagine electing another

senator or former senator like rick santorum who has no experience equivalent to obama and hoping things work out. it has got to be mitt romney. >> governor, one question. if romney loses in ohio and then loses georgia, tennessee and alabama, that's what it looks like right now, how damaging is that going to be to his overall campaign? >> look. is this a game of delegation. what you look at coming out of super tuesday is who win the most delegates. you move on. you have to get 1143 or 1144 to win and every time i've come on this show and other shows i've said it's a long, long slog under the current rules so what you have to look at is who stands where with the delegates after super tuesday. i'm convinced mitt romney will be in great shape with delegates. >> governor richardson do you want to say anything? i saw a shot. you're standing there going like this. do you need to say anything? >> because he's such a good friend of mine he endorses

everything i said. >> exactly. the republicans are doing the work for the democrats, right? >> well, i just think that governor romney is having a very difficult time. i think he will win the majority of states on super tuesday. i think he eventually will be the nominee. but it's going to be a long process. i don't think there will be a brokered convention. but he's going so weakened come his convention time, especially with some of this rhetoric and positions taken on social conservative issues, the alienation of women, the contraception issue, that he'll be a very badly damaged candidate coming in to the fall. the last time i was on your show i predicted president obama would get re-elected very narrowly. now i think it's moving into the comfort area with the economy improving, with his foreign policy in good shape, with the

international community rallying around a lot of our positions on economic issues, on security issues, on iran. you know, the gas price issue is the one that worries me a little bit but i think that he's taking the offensive on it. he's proposing new initiatives. and do i think right now governor romney and even after winning arizona, after winning michigan, his home state he still is going to have santorum and still going have gingrich and paul in there and it's going to be divisive. he's weakened by these attacks. >> governor, the obamacare, if you look at polls bad. auto bailout in michigan four out of ten people approve of it. even in michigan. you got the gallup poll, the three day tracking poll never gets above 45 or 46 for the president and there's 50% disapproval. there's still significant -- and

you're at 8.3, had a big drop down. you don't know what's going to happen over the next six months if there's any back up. >> eight months. >> we got eight no, sir the election. you've got what i call an in spite of recovery. this is a recovery in spite of what obama has done. and what we need to do is understand that this country needs to have leadership. there's no leadership. we're following people all around on foreign policy. and we're following markets that are dragging us in the right direction but we're not showing any leadership. you had a half hour presentation from treasury department a little while ago trying to rewrite history. fannie mae and freddie mac, which was the heart and soul of the problem, the democrats haven't led at all in trying to fix that. >> governor, how do you articulate -- >> look. >> on the in spite of issue and joe and i faked, how do you

articulate that message at a time when the markets and the economy do feel like they are getting better and how are you going to get that ultimately to resonate? >> look, you know, we're bragging about 8.3%, the administration bag about 8.3% unemployment. the public understands 8.3% is lousy. and had 8.3% through an entire administration or higher through an entire administration. the public when they start to discussion on what's happened over the last three or four years will understand it. bill talked about gas prices. when you remind them that the secretary of energy that represents energy policy for president obama, when he started said our goal is to get gasoline prices up like europe which is $8 gas, now he goes to congress and refuses to say that there's a goal to try and get gas prices down. the public is going to get ticked off at that.

by the time november comes around and we're talking real issues to real voters, this president still is in real trouble. >> governor, richardson? >> well, look. i believe the economic numbers are moving in a lot better direction. unemployment. the stock market. economic growth indicators. housing. you're seeing people starting to spend more money. in international issues i think the international community is very strongly behind the president's policies. the republicans are dividing and killing each other on the primary stump. i just see that right now governor romney who i believe would have been a dangerous candidate for president obama because he could move and shift into moderate positions, now can't do it because of the extreme focus on some of these social conservative issues, rather than on the economy.

so i see a long protracted fight the republican nomination, divisive and i see president obama showing leadership on energy issues, on gas prices, doing what he can and i see right now a comfortable victory for him. >> all right. well, you know what? i never appreciated election years that much. i never realized leap years -- so we have an extra day every time we're in an election year we have an extra day. i embrace that. governor sununu, governor richardson thank you. we'll do this again. as i said we have eight months. i don't know why i said six. who knows. >> coming up we have a very special edition of street. carl quintanilla will join us not from the new york stock exchange but from the cme in chicago. that's coming up next. "squawk box" is coming right back.

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welcome back to "squawk box." we have red arrows across the board. you can see those coming across. s&p is off almost two points and you can see here in our implied

percentage open what it all means n our headlines this morning, the justice department uncovered what officials say is one of the largest ever counterfeit goods smuggling operations. several dozen arrests have been made. the defendants allegedly tried to smuggle $325 million in goods from china through a port in newark, a port in newark, elizabeth marine terminal in new jersey. pretty interesting story. almost reminds me of the wire, which you're going to start watching. >> i am going to. thank you. >> we're going to get to a very special place, the windy city, chicago. carl is at the cme for a very special edition of "squawk on the street." mr. quintanilla, what are you doing? >> well, that set back at post nine was getting a little long in the tooth, four days old already. we got a little tired of that. decided to bring the show to chicago. a lot going on today this is actually the eurodollar options pit on a day where we have seen softness in the euro, a lot of questions about whether or not it can hold $1.31, more drama in

spain over their fiscal targets, day two of this european leaders meeting. we'll talk to these guys, get santelli and ira harris, all of them to talk about that. joe, i heard your rant this morning about the geithner opuy getting a lot of chatter here as well. we'll talk to austan goolsbee, maybe he with expand on the notion of people in america having amnesia and whether this phrase, remember the crisis, which sounds an awful lot like remember the alamo will resonate with viewers eight months from now. >> yeah, that was my point. like we haven't heard from the administration every day about the crisis? that's why we're in the position that we're in? i haven't forgotten. how could we forget? maybe because we're in that business. wolf man too, you'll see him probably today, right? >> wolf man is here. wolf man has been tweeting furiously. my favorite comment so far, from one of the guys, laid eyes on me and said, that's not mandy. >> and when are you coming back? i'm wondering, does rush street have to stay open later tonight?

>> well, you know, i used to live here, so i am going to have dinner with a few of my buddies at a steak house, things might get a little crazy, but i'll go back home in the morning and see you guys back on set on monday morning. >> that will be a red eye flight tomorrow morning for you, because your eyes are going to be -- yeah. >> try to at least get a half hour. >> okay. i guess the crowd can go straight to o'hare. >> what is that hot dog place you go at midnight? >> the wiener circle, yes. >> the wiener circle. >> they use four letter words when they serve up the hot dog. >> you cannot order without cursing back at the staff, a tradition. >> morey, you get to your own omelet cooked in a -- >> he'll be eating a lot of good food. >> yeah. >> thanks, carl. we'll see you in just a few minutes. have some fun out there. joe, coming up -- >> we'll talk to our guest host larry bossity, he'll have some

final thoughts. next week, the gop race hits full stride on super tuesday. our guests include former minnesota governor tim pawlenty, former reagan chief of staff ken dubersteen, former white house budget director peter orzag and former chief of staff john podes podesta. don't miss "squawk box" for the latest coverage of the markets and the economy. ck and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.

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stock of the day. a small market cap company, but a big mover this morning. as you can see, kodak is selling its onnine photo services business to shutterfly for $24 million. let's get final thoughts from our guest host, he's been here for two hours doing a great job, we love this man, larry bossidy. he's a cnbc contributor. i was struck by the -- some of the stuff that mark andreissen said. i was surprised in terms of thinking a little bit about some of the issues that -- you don't hear that, that often, from the west coast. >> you don't, particularly

silicon valley. to speak on the subject that he did as broadly as he did i think kind of sets him apart from most of the people he hangs around with out there. he's a very accomplished guy. and he's a good business man, in addition to being a good product person. i was also impressed with what he had to say. >> your initial comments about you're out there, you're far removed from washington, you guys get it done no matter who is in the white house, no matter what is happening. it is because you're entrepreneurs and there is no problem. he goes, actually, regulation -- you don't think of silicon valley and regulations. he mentioned sarbanes oxley. weren't you surprised? >> i was, i was. >> has an impact on ipos. >> how many jobs haven't been create because of the ipos. >> the work you have to do, it is enormous. it does have to be an issue that they have to -- >> before you go, do you want to quickly predict where you think the elections will ultimately move in november at this point? >> i'm an